claimants
21 November 2007
The Unemployment Insurance Fund is making inroads on recovering monies paid
erroneously to undeserving claimants, with over R8 million brought back over
the past six months alone.
Unemployment Insurance Commissioner, Boas Seruwe, told the Labour Portfolio
Committee in Parliament today that the recovery formed part of the fund's drive
to reverse wrongful payments made in the past.
Benefits paid in error are mainly constituted by workers who found
employment but still continued to withdraw benefits, and employers submitting
details of their workers late.
In the 2006/07 report on the financial performance of the fund, the
Auditor-General highlighted benefits paid in errors as one of the sticky points
in the UIF Annual Report.
Seruwe told the Members of Parliament that cumulative amounts as at year end
stood at R66,1 million of which R33 million was in 2006. However, he said that
the 100 percent increase to R66 million was due to the implementation of
various projects aimed at detecting and recovering benefits paid in error.
Seruwe further attributed the increase to employers who fail to comply with
the legislation by failing to submit accurate declarations on time to update
and maintain a database of more than 7,3 million workers.
"By updating details of their workers such as termination of services or new
employment, employers will duly assist in eliminating this problem", Seruwe
said.
He pointed out that in the previous financial year the fund was only
recovering from its debtors via set-off and debtors paying through the
bank.
"To further improve on the collection strategy the fund has this year
involved the services of the State Attorneys in various provinces and third
parties to assist in debt collection", Seruwe explained to members of the
Portfolio Committee.
In 2006/07 financial year, the UIF recovered more than R9,4 million as
compared to R1,3 million in 2005/06 financial year.
"To demonstrate our resolve in debt recovery, during the first half of the
current financial year, the fund has already collected R8,8 million from
debtors. This is a clear demonstration of substantial improvements in the
recovery rate" said Seruwe.
The fund has once again warned that collecting UIF benefits while in
employment is a criminal offence punishable by law. Offenders could also be
suspended for five years from receiving the UIF benefits.
Anyone found to be engaging in this unlawful practice should be reported
immediately through the UIF Fraud Hotline at 0800 60 11 48 or the UIF E-mail
Hotline at fraud@uif.gov.za.
Enquiries:
Kgomotso Sebetso
Tel: 073 269 9870
E-mail: kgomotso.sebetso@labour.gov.za
Issued by: Department of Labour
21 November 2007
Source: Department of Labour (http://www.labour.gov.za)
